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    Horace Tse

    Research Analyst at Credit Suisse

    Horace Tse's questions to PETROCHINA CO (PCCYF) leadership

    Horace Tse's questions to PETROCHINA CO (PCCYF) leadership • Q3 2022

    Question

    Horace Tse of Credit Suisse inquired about the profitability of imported natural gas in Q3, the associated tax refund figures, and the company's natural gas pricing mechanism for the upcoming heating season.

    Answer

    Hua Wang, CFO and Board Secretary, responded to both questions. He stated that in Q3, the company imported 20.94 bcm of natural gas, resulting in a loss of RMB 8.92 billion with a tax refund of RMB 3.52 billion. The loss was attributed to rising import costs indexed to oil prices while domestic prices remained fixed. For the full year, Mr. Wang outlined a strategy to manage losses by boosting domestic production, diversifying procurement, using hedging tools, and optimizing marketing. Regarding pricing, he affirmed that PetroChina strictly adheres to government policies and will work to balance supply guarantees with profitability.

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    Horace Tse's questions to PETROCHINA CO (PCCYF) leadership • Q1 2022

    Question

    Horace Tse from Credit Suisse asked about the financial performance of imported gas in Q1, the outlook for the coming quarters amid high oil prices, and the company's strategy for passing on rising import costs.

    Answer

    CFO Shouping Chai reported that imported natural gas achieved a net profit of CNY 3.47 million in Q1 due to effective loss control. He acknowledged that costs will rise in subsequent quarters but stated PetroChina will mitigate losses through flexible marketing, including direct sales to end-users and increased online trading. He also projected that domestic gas prices would be higher than in the previous year.

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